Our Investment case Our Leadership Statement ANNUAL REPORT 2023 28 Our efforts enabled us to celebrate several key milestones in this landmark year. The Group recorded a total of 119.5 million passenger movements or approximately 84.6% of the all-time high in 2023. This was also the first time we passed the 100 million threshold since 2019. In our operations in Türkiye, passenger movements for SAW shot past 2019 levels by 4.5% to register 37.6 million passenger movements, a new record for the airport. Although overall passenger movements were still short of pre-pandemic levels, for the financial year ended 31 December 2023 (FY2023), Malaysia Airports’ net profit surged past our 2019 numbers by 1.15% to RM543.2 million. This achievement signaled one of the most profitable years for Malaysia Airports since the inception. The Group also declared a final dividend of 10.80 sen per share for FY2023. In recognition of the Group’s consistent financial performance, Malaysia Airports was honoured with The Edge Billion Ringgit Club award in 2023 for the ‘Highest Return to Shareholders over Three Years’ for the Transportation and Logistics sector. The award is testament to our prudent management, consistent performance as well as our resilience and agility, given the volatility of the operating environment over the threeyear period. We are proud that our transformative efforts have been recognised by the Government of Malaysia with the signing of the Operating Agreements in March 2024 entrusting the Group with the continued role of operating, managing and maintaining, 39 airports and STOLports for the next 45 years until February 2069. In addition, the Operating Agreements also provide for favourable commercial terms and a transparent investment return mechanism which give Malaysia Airports the flexibility to pursue strategic investments which are essential to enhance airport capacity, facilities and infrastructure to elevate overall service standards, thereby expanding Malaysia Airports' role beyond being a pure airport operator, to an airport developer. I am pleased to share with Malaysia Airports’ shareholders the highlights of this breakthrough year, our achievements and the challenges we overcame in creating value for shareholders, and our strategies for future growth and development. ACI accreditation for customer experience In tandem with the increase in passenger movements, it was crucial to ensure the passenger experience at our main hub at KUL continued to adhere to international best practices and standards. Hence, in early 2023, Malaysia Airports embarked on the Airport Customer Experience Accreditation (ACEA) programme, an initiative of Airports Council International (ACI) World that builds airports’ long-term capacity to enhance customer experience management. By the end of 2023, KUL had made significant progress, with ACI accrediting our airport at Level 2 of the ACEA programme’s five levels, reflecting the airport’s success in orchestrating a seamless passenger-centric journey to enhance customer satisfaction. The accreditation also signifies Malaysia Airports’ focus on continuous improvement of customer experience and services in line with international standards. Airport Service Quality recognition for KUL and LGK Our efforts at KUL were also recognised in passenger feedback, resulting in a score of 4.99 out of a possible 5.00 points in ACI World’s Airport Service Quality (ASQ) programme, the globally recognised initiative that provides ACI member airports with tools and expertise to measure and improve passenger satisfaction, business performance and airport service quality. Langkawi International Airport (IATA Code: LGK) scored a perfect score of 5.00 in the same programme. With these scores, KUL was tied 9th in the ASQ rankings for airports in Asia Pacific with capacity of over 40 million passengers per annum (mppa) while LGK secured the top spot for airports with capacity of 2-5 mppa, a testament to our ability to maintain passenger satisfaction despite the increase in passenger movements in the year. GROUP CHIEF EXECUTIVE OFFICER’S MESSAGE An elevated passenger experience Our core strategic focus for 2023 was reimagining the passenger journey through our airports and elevating their experience by enhancing convenience, comfort and connectivity.
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